Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Britain's economy on course for rapid recovery from coronavirus crisis, predicts Bank of Engla

Chief economist Andy Haldane predicts a rapid recovery from the pandemic. He says consumer spending has helped UK claw back as much as half of losses. He insists ‘now is time to see economic glass as half full rather than half empty’

Britain's economy is on course for a rapid recovery from the coronavirus crisis, a senior Bank of England official predicts today.

Chief economist Andy Haldane says strong consumer spending has already helped the UK claw back as much as half of the losses triggered by the pandemic.

He insists ‘now is the time to see the economic glass as half full rather than half empty’ – as official statistics reveal a sharp increase in the number of white collar workers returning to their offices.

Responding to the figures, Chancellor Rishi Sunak said: ‘Our economy has been hit hard by the virus, but the statistics out today show promise of Britain bouncing back.

‘The recovery won’t be easy but if we all play our part, either by going back to work in our offices or enjoying a meal out, we can overcome this together and come out stronger than before.’

Writing in the Daily Mail, Mr Haldane says the economy is expected to expand by more than a fifth in the second half of the year, which would be ‘by far the fastest rise’ since quarterly records began.

He says: ‘The foundations for an economic recovery – a rapid one – are already in place, hiding in plain sight. Economic activity in the UK is not falling like stone, in fact it has now been rising for more than three months, sooner than anyone expected. It has also recovered far faster than anyone expected.’

His upbeat intervention comes after it was confirmed on Wednesday that Britain has plunged into recession, with GDP falling by a record 20.4 per cent in the second quarter of this year.

But official figures also revealed that after collapsing in April – the first full month of lockdown – the economy expanded by 2.4 per cent in May and 8.7 per cent in June.

An Office for National Statistics report yesterday suggested almost half of Britons commuted to work last week as pleas by Boris Johnson to return to the office appeared to be making an impact.

Under guidance, which came into effect at the beginning of the month, employers were urged to encourage white collar staff to go back to the office if it is safe to do so. Previously the advice was to work from home if possible.

The ONS report showed 48 per cent of people commuted to work last week, up from just 29 per cent towards the end of May.

It also showed that 23 per cent worked solely from home, down from a peak of 38 per cent in mid-June. And last week just 3 per cent of workers said they were furloughed, down from 15 per cent in May.


A healthy dose of optimism can save jobs, writes Bank of England chief economist ANDY HALDANE

After a week of relentlessly grim forecasts about the economic calamity we’re hurtling towards, could there possibly be a glimmer of light in all the gloom?

In today’s Mail, Bank of England chief economist Andy Haldane makes no bones about the scale of the challenges ahead – or the pain they will cause.

The Bank predicts the collapse in economic activity will push unemployment up to 2.5million by the end of the year (a conservative estimate), with the young, poor and least-skilled being worst affected.

This is far more than mere numbers. Every job lost means a life thrown into chaos, a person or family worrying about how to pay the bills.

But for all the anxiety, Mr Haldane struck a note of cautious optimism. The foundations for recovery are already there, he said, ‘hiding in plain sight’.

Far from continuing to plummet, GDP has been rising at roughly 1 per cent a WEEK for the past three months and the UK has already recovered half its Covid losses.

Car sales are back to pre-virus levels, and while the High Street is still deep in crisis, online purchases have risen by 70 per cent and spending on electrical goods, DIY and takeaways is soaring.

Mr Haldane expects national income to rebound by 20 per cent in the second half of this year. And though unemployment will continue to rise in the short-term, he believes that with continued Bank and Government support, the worst of this recession will be over quickly.

However, there is a giant obstacle on the road back to prosperity, and that is fear, which can be as contagious and damaging as Covid itself.

The health risk from the virus is tumbling, with death rates down 95 per cent and local spikes being well contained by local measures.

Yet Britain has been slower to get back to work than the rest of Europe. True, nearly 50 per cent of people travelled into work last week. But that’s still too few.

With face masks and distancing giving extra confidence on public transport and the imminent return of schools allowing parents to resume their jobs, we must get back to a semblance of normality.

Or as Mr Haldane put it, ‘generate a virtuous circle of spending, jobs and incomes’.

The Civil Service and big corporations should be giving a lead, yet sadly they seem in no hurry to resume business as usual. Some are happy for their employees to work from home until well into next year. This institutional indolence has to stop.

The Bank and Chancellor Rishi Sunak can pave the way to getting this country back on track before the economic damage of Covid becomes irreversible. But the rest is up to all of us. Workers of Britain: Your country needs you.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×